The Capani crime family was founded by Angelo Capani and Peter Capani after Toni Leone gave him permission to start their own family when he re-located to Nevada. After Peter's death in New York and Angelo's death in Cuba, his son took over the family.

In 1959, after the assassination of his rivals, Toni Leone re-located a part of his organization to Nevada to oversee his businesses in Las Vegas and Reno. However, the original Leone Crime Family continued it's operations in New York, under the supervision of Angelo Capani and Peter Capani, who got permission to form his own family. Capani started to suround himself with other strong men, one of whom was Dominic Gambotti, who was elevated to the rank of Caporegrime. They immediately continued to expand their rackets and seeking new ways of making money.

In the late 1950s, Capani's organization supported Vito Leone's dealings in Nevada with Big Jon and the government of James Casto. Angelo Capani and Dominic made frequent business trips to Nevada and were also present at the meeting in late 1958, to celebrate Jon's birthday and to get a piece of his operations. However, after the meeting, James declared his abdication after his forces were defeated by the rebels of Fidel, forcing Angelo Capani and Dominic to flee the country. During a raid by the rebels, Aldo Capani was killed while arriving at Nevada's airport. Shortly after, Toni Leone made 19 year-old Michael Capani the new Don of the Capani crime family.

Back in New York, Michael was informed that some of his own men joined forces with the Malone Crime Family, who were two former Soldatos who had started their own families, causing an uproar in the criminal underworld. Michael was given instructions to deal with the matter, and after killing Jonny Malone and his men, he was called to Florida to help Mike's organization and to set up new businesses. Under Michael's great reign the Capani family expanded quickly, recruiting new men and forming a partnership withMike's and the Garatinos. They also started working together with the CIA via their agent Dave Mitchell, who gave information about the status in Nevada. New wars where fought for supremacy with the Meidas in Nevada and the Anados from Italy, which were all won. Michael killed Dave Mitchell